A city in South Korea is expanding its blockchain payment program

South Korea's major satellite city, Seongnam, is gearing up to expand its existing blockchain-based payment program by issuing new digital gift certificates.

According to Kyunghyang Shinmun, the city's blockchain infrastructure will rely on a mobile app called Chak. This application will be built by Korea Minting and Security Printing Corporation, or KOMSCO. The Seongnam project aims to make it easier for the elderly and middle-aged to use existing technology in the city. They also hope to strengthen the use of contactless payments during the COVID-19 pandemic.

Local media said three types of digital gift cards - representing cash, checking cards and mobile cards - could be used at 45,000 locations across the city.

Seongnam is well known for Pangyo Tech Valley, an IT complex that serves as the home of many of the country's tech giants, including Kakao Group, SK Telecom, AhnLabs, Nexon.

The operator behind the Seongnam project previously boasted of record profits made in 2020 with his stablecoin and blockchain projects.

KEB Hana Bank, one of the largest commercial banks in South Korea, concluded an agreement on August 9 with the state-owned highway operator, Korea Expressway Corporation, to introduce tolls.